PEOPLE PROCESS TECHNOLOGY First Quarter 2018 Update May 8, 2018 Earnings Call
PEOPLE PROCESS TECHNOLOGY Q1 2018 Highlights and Execution 3
Q1 2018 Highlights Q1 2018 Results Strong Q1 results Generated 171 million of DCF Strong coverage Distribution coverage 1.1x and leverage Bank facility leverage 3.8x Record volumes in Record DJ Basin wellhead volumes key areas…
Extending the Value Chain Disciplined capital allocation strategy 5-7x focused on strong returns 2018 Mewbourn 3 multiple 2019 OConnor 2 2020 DJ Plant 12 Processing 2-7x 2018 Sand Hills expansion multiple 2019 Front Range…
Extending Integrated DJ Basin Infrastructure Expanding leading position in the DJ Basin well into the next decade G&P Expansion Adding 0.5 Bcf/d in the next twelve months Adding up to - Mewbourn 3 200 MMcf/d plant accelerated to Aug…
Sand Hills Expanding Fast Sand Hills bringing on more capacity at a faster pace, without incremental capital Sand Hills Capacity Growth MBpd 4 485 Q118 +60 3 utilization 95% +25 2 1 +35 5-7x multiple 400 Expanding Permian…
Consolidated Q1 2018 Financial Results Strong Logistics & Marketing results and lower costs more than offsetting lower Discovery and higher maintenance capital Distributable Cash Flow (MM) 171 161 8 Producer Settlement 39 Q1…
Q1 2018 Financial Position Financial Priorities Q1 2018 & Actual 2018 Guidance 1 Bank leverage(1) 3.8x 4.0x Ample liquidity and financial flexibility 3.8x bank facility leverage ratio(1)(2) 2 Ample liquidity with 1.3 billion…
2018 Gross Margin, Sensitivities and Hedges Investments in fee-based growth coupled with multi-year hedging program provides downside protection on commodity exposed margin 2018 Gross Margin 2018 Annual Commodity Sensitivities After…
DCP 2.0 Driving the Operations of the Future Financial data SCADA Contracts and DCS ICC Real-time Engineering prices data KPIs INTEGRATED COLLABORATION CENTER (ICC) LINKING NUMEROUS DATA SOURCES Integrated…
Key Takeaways Transforming our business extending integrated value chain and driving increasing cash flows Expansive Strong Q1 Strong Q1 results, coverage and leverage DJ Basin results strategy Multi-year DJ Basin infrastructure…
PEOPLE PROCESS TECHNOLOGY DCP Midstream Appendix: Financial and Other Supporting Slides 13
2018 Guidance ( in Millions) 2018 Guidance 2018 Assumptions Higher Sand Hills volumes, earnings and distributions (1) Adjusted EBITDA 1,045-1,135 associated with expansions placed in service Higher G&P volumes and margins across…
2017 to 2018 DCF Guidance Drivers Growth, price and efficiencies offsetting UPSIDE POTENTIAL TO FORECAST Discovery and increased financing costs Additional MM volumes 670+ Ethane recovery 30-40 Accelerating DCP 2.0 Growth…
Adjusted Segment EBITDA* Logistics & Marketing Adjusted EBITDA* (MM) 32 13 Strong Q1 2018 (6) (2) Sand Hills NGL 129 92 volume growth and marketing results Q1 2017 Other Costs Gas and NGL NGL Pipelines Q1 2018 Adjusted…
Volumes Logistics NGL Pipeline Volume Trends and Utilization Q1'17 Q4'17 Q1'18 Q1'18 Approx System Average Average NGL Average NGL Average NGL Sand Hills is bringing Gross Length Capacity Net Capacity Throughput Throughput…
2018 Gross Margin, Sensitivities and Hedges Investments in fee-based growth coupled with multi-year hedging program provides downside protection on commodity exposed margin 2018 Gross Margin 2018 Annual Commodity Sensitivities Before…
Margin by Segment* MM, except per unit measures Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Gathering & Processing (G&P) Segment Natural gas wellhead - Bcf/d 4.47 4.60 4.46 4.48 4.58 (1) Segment gross margin including equity earnings…
Disciplined and Strategic Growth Executing strategic, lower risk growth projects at 5-7x multiples with line of sight to fast volume ramp growing fee-based earnings Projects in Progress Est. 100% Est. Expected (MM net to DCPs…
Expanding Integrated DJ Basin Footprint Expanding integrated DJ Basin footprint Solving G&P, NGL and gas takeaway for the DJ one of the top basins in the country Basin into the next decade G&P Expansion adding up to 1.5 Bcf/d of…
Expanding Permian Logistics Footprint Extending Logistics value chain with Sand Hills leverages the entire Permian with fee-based projects in the Permian lower risk and higher returns Sand Hills NGL Pipeline expansion Completed…
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